In an interview with newspaper Valor, William Lauder, chairman of cosmetics giant Estée Lauder, said the Brazilian market is on the company’s plans for premium cosmetics and luxury brands.
Lauder declared that the country is “one of the most important markets” for the brand in the future. According to Estée Lauder’s grandson and heir, there is still plenty of room for premium cosmetics since low-cost products currently dominate the Brazilian market.
“We are well-established in Brazil. I took several trips in the country, we compete with important local brands. In the long term this is a market in which we will keep expanding”, said Lauder. The only major impact of Brazil’s economic crisis on the company was the devaluation of the Real, Lauder stated.
The estimate sales growth for premium beauty products in the world is of 5 percent. With the expansion of e-commerce, competition has increased between brands.
William Lauder first began working at Estée Lauder in 1986 and was responsible for expanding the company’s portfolio. One of his current challenges is being able to satisfy the needs of new customers. “Today a blogger alone has a significant influence on the sales of beauty products”, Lauder told Valor. The best marketing tool is person-to-person buzz, he believes.
Cosmetics on the rise despite crisis
The Brazilian domestic market for cosmetics is big, and it keeps getting bigger. 65.7 percent of Brazilian women consider makeup a necessity rather than a luxury. In addition, about half of Brazilian women consider makeup as a professional investment.
Meanwhile, men’s beauty products sales increased 7.1 percent, which should continue through 2019. Finally, product diversity is also on the rise, as the industry recognizes the many colors of its clientele. The Brazilian research institute IGBE currently estimates up to 104 million Brazilians have trouble finding cosmetics suitable for their skin tone or hair texture.